Restructuring / Turnaround Strategies Case Study

Reinventing DuPont

Abstract:
DuPont, the leading US based Life Science Conglomerate (LSC) was founded in 1802. After nearly 100 years in the explosives business, the company realigned its focus on chemicals, banking on its polymer innovations. But with decline in profitability in the chemical business, DuPont’s focus shifted to a sustainable growth strategy aimed at increasing the use of renewable energy and raw materials, and moving away from depletable resources like petrochemicals. Chad Holliday, who took over as a CEO in 1998, gave equal emphasis to both chemical and life science businesses unlike other players in the industry like Monsanto, Novartis etc. DuPont has emerged as a vertically integrated LSC after divesting its interests in energy, pharmaceuticals and textiles and forming strategic alliances with Bunge Limited and Tate and Lyle. Analysts were wondering how the new gamble would take off.

Pedagogical Objectives:

• Reinvention initiatives of Chad Holliday
• Operational details of a life science conglomerate like DuPont
• Vertical and horizontal integration using joint ventures and alliances
• Impact of long-term strategies on a company’s finance.

Keywords : Life science industry; Conglomerates; DuPont; Chad Holiday Business Strategy; Sustainable growth strategy; Reinvention strategy; Renewable energy; Restructuring / Turnaround Strategies Case Study; Bio-based products; Polymers; Joint ventures; Acquisitions and divestitures; Marketing and distribution strategies; Vertical and Horizontal integration; Product diversification